OLD MUTUAL GLOBAL INVESTORS CELEBRATES TWO MILESTONES


OLD MUTUAL GLOBAL EQUITY ABSOLUTE RETURN FUND REACHES 5TH ANNIVERSARY & OM ARBEA FUND ITS 1ST BIRTHDAY

On 1st July 2014, Old Mutual Global Investors today marked the anniversaries for two of the funds managed by Ian Heslop, Amadeo Alentorn and Mike Servent.  The US$1,422 billion* Old Mutual Global Equity Absolute Return Fund celebrated its fifth anniversary and the US$103 million* OM Arbea (Hedge) Fund was one year old.

In the last 12 months, the assets under management of these  two funds have grown by US$1.3 billion.  The Old Mutual Global Equity Absolute Return Fund has returned 3.9%+, 9.0%+ and 7.0%+ annualised over one three and five years respectively, whilst the OM Arbea hedge Fund has returned +8.4%+ since launch. Old Mutual Global Investors believes that clients have been especially attracted by the fact that the Funds have shown a correlation of close to zero with Equity markets, making the Funds an excellent diversifier within Client portfolios.

Julian Ide commented, “We are pleased to be able to celebrate the anniversaries of two of our key funds.  Well done to Amadeo, Ian and Mike for delivering such impressive investment track records on these two funds, as well as the other funds that they manage”.

Donald Pepper, Managing Director of Alternatives added: “We are delighted that Clients are seeing, and enjoying, the benefits of a strategy that has delivered genuinely uncorrelated returns. This is an objective also achieved by our other two hedge funds, the Old Mutual UK Specialist Equity Fund, managed by Ashton Bradbury, and the Old Mutual Global Statistical Arbitrage Fund, managed by Paul Simpson.”

Launched in July 2009, and domiciled in Dublin, the objective of the Old Mutual Global Equity Absolute Return Fund (a UCITS fund) is to deliver absolute returns over rolling 12 month periods that have a low correlation with equity and bond markets, through a market neutral portfolio of around 700 global equity stocks.  The team’s approach is to rigorously assess companies against criteria including stock price valuations, balance-sheet quality, growth characteristics, efficient use of capital, analyst sentiment, and supportive market trends.  The team builds a diversified portfolio of stocks that is expected to outperform in the current macroeconomic environment, while applying stringent risk-management techniques, carefully controlling turnover and trading costs, and maintaining strict limits on sector and stock positions. Commenting on the growth of the fund, Donald Pepper noted, “Investor appetite for ‘Liquid Alternative’ UCITS Funds is strong. We are also seeing increased demand for the UK Opportunities UCITS Fund, managed by Simon Murphy, given its strong performance, as it approaches its 3 year track record.”

The OM Arbea Fund shares the same investment process as that of the Old Mutual Global Equity Absolute Return Fund.  Domiciled in the Cayman Islands, the Fund is a global equity market neutral fund with an investable universe covering 3,500 liquid stocks across developed markets, and the major emerging markets of Korea, India, Taiwan and China (through Hong Kong).  The objective of the Fund is to target 9% volatility using gross leverage of between 300 and 400% and aim to ensure that the correlation of the Fund’s returns to equity returns is very low.  The Fund is aiming for a return of cash plus 9-10% annualised.  The Fund is only invested in equities or equity equivalents with all foreign exchange exposure being hedged back to base currency. The Fund will aim to generate its performance from a very diversified investment portfolio of over 700 positions, which will be roughly equally split between long and short positions. 

Ian Heslop, Portfolio Manager and Head of Global Equities, comments “Having worked together as a team for over 9 years, Amadeo, Mike and I have been delighted that our funds are now being recognised in the market and that an increasing number of clients are investing in our funds.”

The strategy has received a large number of Industry Awards in 2014 including:

  • The 'Equity Market Neutral Fund of 2013' at the Choice Hedge Fund Awards 2014
  • The 2014 IHFA Award
  • ·         The Best Absolute Return Fund in the Equities Absolute Return category at the Expansion and Allfunds Awards which took place in Madrid
  • A second Raging Bull Award in succession for the Best Rand-Denominated Global Equity General Fund in South Africa.

Commenting on the outlook for the next 12 months, Ian stated: “We believe that investors face a period of adjustment as quantitative easing programmes are scaled down and removed, with Japan the only major exception. It seems highly likely that market volatility will rise from its current low level. The ability of the portfolio to deliver uncorrelated returns with managed volatility should be prized in a market environment in which equities are unlikely to move consistently upwards”.

-          ends –

*as at 30 June 2014 (Old Mutual Global Absolute Return Fund) and 1 July 2014 (OM Arbea)

+ as at 30 June 2014.  Source: Factset Portfolio Publisher

Media Contacts:

Vee Montebello

Head of PR and Internal Communications, London                        + 44 20 7 332 7687

Notes for editors:

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now manages over £17 billion* of assets under management for its global client base.    Old Mutual Global Investors is the asset management division of Old Mutual Wealth.  The team consists of 184 industry professionals, including a team of 47 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. To find out more information please go to:  www.omglobalinvestors.com

Old Mutual Wealth:

Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, provides wealth management solutions such as investments, pensions and life assurance to help financial advisers manage their clients’ wealth. The business currently oversees £80.2 billion* in customer investments and has operations in the UK, Continental Europe and various international markets. Its strategy is to combine asset management with product and platform expertise, in order to grow further as a modern, integrated wealth management business that enables positive futures for its customers.

Old Mutual Wealth is a core part of Old Mutual plc, a leading international long-term savings, investment and protection Group. Based in London, it is trusted by more than 16 million customers across the world. For over 169 years, it has been serving the growing insurance and investment needs of local customers, companies and their advisers. Old Mutual’s vision is to become its customers’ most trusted partner, being passionate about helping them achieve their lifetime financial goals.

*as at 31 March 2014

Please remember that past performance is not a guide to future performance.  Investment involves risks.  The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested.     Old Mutual Global Investors is the trading name of Old Mutual Global Investors (UK) Limited, Old Mutual Fund Managers Limited and Old Mutual Investment Management Limited.  Old Mutual Global Investors (UK) Limited is registered in England & Wales under number 02949554, Old Mutual Fund Managers Limited is registered in England & Wales under number 01825772 and Old Mutual Investment Management Limited is registered in England & Wales under number 4227837. Authorised and regulated by the Financial Conduct Authority with FCA register numbers 171847, 1193240, 208543 respectively, VAT number 386 1301 59. OMGI 08/14/0040.